Jan. 23--With its customers increasingly feeling the effects of a deteriorating U.S. economy, GATX Corp. turned in lower fourth-quarter earnings, but matched analyst forecasts.

The Chicago-based company, which is the nation's leading lessor of railcars and locomotives, said net income was $28.9 million, or 58 cents a diluted share, down from the year-ago quarter's $41.4 million, or 81 cents a share.

The year-ago period was bolstered by a onetime gain that added 19 cents to per-share results, however, and excluding that unusual item the latest quarter's 58 cents was down only slightly from 61 cents last year.

GATX noted that its economy-sensitive rail unit had profit of $58.2 million, down fro $63.5 million a year ago. The latest quarter was hurt because the leasing concern was obliged to set aside $6.9 million to cover the possible loss on a finance lease to a large customer which declared bankruptcy.

Because of the structure of most of its railroad-equipment leases, the company noted, "a loss provision of this magnitude is unusual in rail."

GATX, which currently has about 113,000 railcars in its North American fleet, said the utilization rate of those cars in the latest quarter was a solid 97.9 percent, unchanged from the year-ago period.

The company "posted outstanding results in 2008 despite increasing challenges," said President and Chief Executive Officer Brian A. Kenney. Marketplace conditions had displayed "tremendous" volatility in recent months, he noted, and GATX is "not immune to current market challenges."

In 2009, GATX said, officials expect railfleet utilization and lease rates will ease, as will demand for services of the company's Great Lakes shipping company.

While forecasting results for the year ahead is complicated by the current "unpredictable environment," Kenney said, GATX thinks earnings in 2009 will be in the area of $2.50 a share. -- below the $2.78 a share that analysts have been anticipating.

jpmiller@tribune.com

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